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Which of the following increases basis risk? A. A large difference between the futures prices when the hedge is put in place and when it
Which of the following increases basis risk? A. A large difference between the futures prices when the hedge is put in place and when it is closed out B. None of the above C. A reduction in the time between the date when the futures contract is closed and its delivery month D. Dissimilarity between the underlying asset of the futures contract and the hedger's exposure
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